Obama makes pitch for student loan rate extension at University of Iowa

Wednesday

Apr 25, 2012 at 1:56 PMApr 25, 2012 at 1:59 PM

IOWA CITY, Iowa -- President Barack Obama capped off a two-day, three-state tour promoting an extension of low-interest federal student loans Wednesday with a speech at the University of Iowa.

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IOWA CITY, Iowa -- President Barack Obama capped off a two-day, three-state tour promoting an extension of low-interest federal student loans Wednesday with a speech at the University of Iowa.

"Now is not the time to double interest rates on our student loans," Obama told students, noting that if Congress doesn't act by July 1, the current 3.4 percent interest rate on student loans will double to 6.8 percent.

The Obama administration has argued that a failure to extend the low-interest rate will result in a $1,000 average increase for every student receiving federal loans. Approximately seven million students receive the loans.

"How many students here can afford to pay an extra thousand dollars?" the president asked, looking around the room. "I don't think so."

"It makes me sick just thinking about it," he added.

Relating his own personal experience, Obama said that despite their success, he and his wife had only recently paid of their college loans.

"We only finished paying off our student loans about eight years ago," he said. "Think about that. I am the President of the United States. It was only about eight years ago that we finished paying off our student loans."

Obama delivered his speech after hosting a roundtable discussion with students. He gave similar speeches at the University of North Carolina and the University of Colorado on Tuesday.

While congressional Republicans have expressed concern about the high cost of extending the lower interest rates, presumptive GOP nominee Mitt Romney this week aligned himself with the president's position.

"With the number of college graduates that can't find work, or that can only find work well beneath their skill level, I fully support the effort to extend the low interest rate on student loans," Romney announced at a press conference in Pennsylvania Monday.

House Republicans have favored extending the 3.4 percent rate but have said the $6 billion must be offset by other spending cuts. House Speaker John Boehner (R-Ohio) was due to discuss the Republican plan at a 4:00pm ET press conference on Capitol Hill.

Politico reported that it would involve cutting spending from what the GOP dubbed a "slush fund" contained in Obama's health care law.

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